Neale G. O'Connor, F. Johnny Deng and Jingsong Tan
The purpose of this paper is to investigate the influence of liberalization forces, political constraints (on labor decisions) and formal control mechanisms (i.e. delegation of…
Abstract
Purpose
The purpose of this paper is to investigate the influence of liberalization forces, political constraints (on labor decisions) and formal control mechanisms (i.e. delegation of decision authority, objective performance measurement and merit‐based rewards) on the performance of Chinese State‐owned enterprises (SOEs).
Design/methodology/approach
A survey instrument was used to collect data from functional managers representing over 500 SOEs. Structural equation modeling was used to analyze the data.
Findings
The findings revealed significant and positive path relationships between liberalization forces and each of the formal control mechanisms, leading to firm performance. The findings also reveal that political constraints have a significant and negative path relationship with objective performance measures and firm performance.
Originality/value
The evidence provided in this study adds to our understanding of the role the institutional environment plays in the structuring and management of the firm in transitional economies. The topic is of interest, given the pace of modernization of firms in emerging economies, and the differences in the institutional “rules of the game” that exist compared with developed economies. Both of these forces have the potential to affect not only the management control practices in emerging economy firms, but also other firms that do business with them.
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This study, conducted in a field setting, examines the pattern of budget and cultural controls across Korean firms and Korean joint ventures with U.S. and European firms in South…
Abstract
This study, conducted in a field setting, examines the pattern of budget and cultural controls across Korean firms and Korean joint ventures with U.S. and European firms in South Korea—a nation with a dominant Confucian philosophy divergent from the modern capitalist philosophy that dominates Anglo‐American approaches to control. The empirical results provide support for the hypothesis that differences exist in the pattern of controls between U.S. and European joint ventures. While European joint ventures exhibited stronger forms of budget control, U.S. joint ventures exhibited a stronger form of cultural controls. Cultural controls were evidenced by lower levels of power distance exhibited by the presence of younger, higher educated Korean managers who have been in a joint venture for a longer period of time. Interview data was used to further examine aspects of control. The education and experience of Korean managers and (self‐) selection were found to facilitate the adoption of foreign parent controls. Accordingly, this paper provides a contribution to theory development on the transfer of parent company management control practices to joint ventures in a specific Asian nation context.
Neale G. O'Connor and Cecilia L.K. Cheung
The purpose of this research is to investigate the joint influence of early product adoption and bank customer accounting in Hong Kong.
Abstract
Purpose
The purpose of this research is to investigate the joint influence of early product adoption and bank customer accounting in Hong Kong.
Design/methodology/approach
In‐depth interviews at three Hong Kong banks provided the basis for designing a survey instrument, which was used to collect data from 35 local and overseas banks. Performance data were collected from the financial statements published by the banks
Findings
Findings revealed significant interactive influences of early product adoption and customer accounting practices on bank performance. That is, performance would be enhanced if customer accounting practices were used to a greater extent in those banks that were early in adopting a greater range of products. The evidence shows that bank performance in an intensely competitive market such as Hong Kong is driven by the fit between customer accounting practices and early product adoption strategies.
Research limitations/implications
This paper is subject to small sample size and the use of a cross‐sectional sample setting.
Originality/value
The evidence that is provided in this study adds to the understanding of the relationship between management accounting and organisational strategy. The topic is of interest given the recent deregulation of the banking industry in Hong Kong and the expansion of products that have been offered by banks during the last five years.
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Peter Chalos and Neale G. O’Connor
Studies the characteristics, control and performance of joint ventures producing a model based on four cases. Explains the theory of complementary strategic objectives, and the…
Abstract
Studies the characteristics, control and performance of joint ventures producing a model based on four cases. Explains the theory of complementary strategic objectives, and the need for delineating specific transaction costs and management controls under differing cultures. Interviews managers of four Sino‐American Joint Ventures in manufacturing for several years. Finds that the US partner controlled the technology, the Chinese partner wanted to reduce imports and import management and product skills. Focuses on raw material sourcing as a cause of conflict, as well as slow learning and high transaction costs from a poorly controlled system. Points out the keenness for incentive payments among Chinese workers and the reluctance by Chinese managers to have their performance evaluated.
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Negotiators gain valuable insight into the other party's true interests and reach mutually beneficial agreements by discussing their priorities and preferences among issues. This…
Abstract
Negotiators gain valuable insight into the other party's true interests and reach mutually beneficial agreements by discussing their priorities and preferences among issues. This study investigated how motives are related to information exchange, and how this, in turn, affects perceptual accuracy and outcomes. The analyses revealed that cooperatively‐motivated dyads followed an information exchange route to settlement, whereas individualistic dyads shared little information. Moreover, while information exchange was related to perceptual accuracy for cooperative dyads, this was not the case for individualistic negotiators. The effectiveness of this settlement route varied when different kinds of issues—integrative and common‐value (compatible) issues—were considered While integrative issues were likely to be settled through information exchange, common‐value issue outcomes were determined in large part by negotiators' first offers. These findings suggest that the scope of the information‐accuracy hypothesis should be modified to account for differences among motives and issues.
Negotiation is a ubiquitous part of work-life. As such, negotiations do not occur in a vacuum, which means that we often find ourselves negotiating again and again, in a variety…
Abstract
Negotiation is a ubiquitous part of work-life. As such, negotiations do not occur in a vacuum, which means that we often find ourselves negotiating again and again, in a variety of situations, with varying degrees of success and failure. By taking every opportunity that presents itself, we can learn and develop our negotiation skills further as a result of our cumulative negotiation experiences – especially the more difficult ones. To date, the literature on negotiation and learning from failures has yet to be integrated. In pursuit of this goal, this chapter will firstly, identify the characteristics or specific aspects of a negotiation that could be a setback or failure, and secondly, integrate failures and setbacks into a systematic approach in which we can learn effectively from these setbacks, in which the author applies the literature on learning from failure to specific negotiation setbacks.
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Frank R.C. de Wit, Karen A. Jehn and Daan Scheepers
Purpose – Negotiations can be stressful, yet are unavoidable in many organizations. Members of organizational workgroups for instance need to negotiate about issues such as task…
Abstract
Purpose – Negotiations can be stressful, yet are unavoidable in many organizations. Members of organizational workgroups for instance need to negotiate about issues such as task division and different ideas on how to complete a project. Until recently little research effort has been directed to understanding negotiators' stress responses. Similarly, little is known about the consequences that these stress responses may have on negotiation outcomes. In this chapter we argue that group members' physiological stress responses are a key determinant of the outcomes of intragroup negotiations.
Design/Methodology/Approach – We focus on two distinct physiological responses (i.e., threat and challenge) and argue that relative to threat responses, challenge responses will be related to superior information sharing, information processing, and decision-making quality. Moving beyond a uniform relationship between physiological reactions and negotiators' behaviors and outcomes, we also focus on two moderating characteristics: the relative power of group members, and whether the negotiation is purely task related, or co-occurs with relationship issues. We discuss effects on both the individual and the group level, extend our ideas to other forms of negotiations, and end with practical and theoretical implications.
Originality/Value – A better understanding of psychophysiological processes during intragroup negotiations may help to explain when intragroup disagreements help or hinder group outcomes and, therefore, may help to solve the paradox of intragroup conflict.
This study examined the influence of mediator insight on disputants' perceptions and behaviors in negotiation. Participants played the role of student employee representatives and…
Abstract
This study examined the influence of mediator insight on disputants' perceptions and behaviors in negotiation. Participants played the role of student employee representatives and bargained with student management representatives over a number of issues. During the course of the negotiation, a mediator made recommendations as to how the conflict should be resolved. The experiment varied (1) the amount of information disputants believed mediators possessed about their interests and needs and (2) mediator recommendations (e.g., integrative, compromise, non/ integrative). The results indicated that perceived insight (i.e., the level of information about the conflict) had strong effects on disputants' perceptions of mediator credibility. Perceptions of mediator credibility, in turn, were found to influence disputants' general perceptions of the mediator (e.g., acceptability, confidence, satisfaction) and perceptions of the mediator's recommendations.
The Howard Shuttering Contractors case throws considerable light on the importance which the tribunals attach to warnings before dismissing an employee. In this case the tribunal…
Abstract
The Howard Shuttering Contractors case throws considerable light on the importance which the tribunals attach to warnings before dismissing an employee. In this case the tribunal took great pains to interpret the intention of the parties to the different site agreements, and it came to the conclusion that the agreed procedure was not followed. One other matter, which must be particularly noted by employers, is that where a final warning is required, this final warning must be “a warning”, and not the actual dismissal. So that where, for example, three warnings are to be given, the third must be a “warning”. It is after the employee has misconducted himself thereafter that the employer may dismiss.
Elizabeth A. Mannix and Stephen J. Sauer
Within the organizational literature, the emphasis on group performance has tended to overshadow issues of group composition and structure. In this chapter we urge group scholars…
Abstract
Within the organizational literature, the emphasis on group performance has tended to overshadow issues of group composition and structure. In this chapter we urge group scholars to turn their attention to the topic of hierarchy in organizational groups. We focus on hierarchy as defined by both status and power. We propose that understanding how organizational groups resolve conflicts, make decisions, and ultimately perform, must stem from an understanding of the hierarchical structure in the team. Hierarchy imposes constraints on group interactions and should therefore be more central in our frameworks, theories, and research. We look at three areas that could benefit from bringing a hierarchical perspective to the forefront: (1) Information exchange and discussion biases in group decision making, (2) The study of conflict management and negotiation, and (3) Creativity and effectiveness in diverse teams.